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TMI BlogAmendment to Ch IX of the Customs Act, 1962 – Insertion of Section 58A – clarification regarding transitional provisions relating to Duty Free Shops/Ship stores/Airline Stores/Diplomatic StoresX X X X Extracts X X X X X X X X Extracts X X X X ..... All Commissioners of Customs, All Commissioners of Customs & Central Excise. Subject: Amendment to Ch IX of the Customs Act, 1962 - Insertion of Section 58A - clarification regarding transitional provisions relating to Duty Free Shops/Ship stores/Airline Stores/Diplomatic Stores - reg. Sir / Madam, The Finance Act, 2016 has inserted section 58 A in chapter IX of the Customs Act. Section 58 A reads as under: SECTION 58A. Licensing of Special Warehouses - (1) The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a special warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by the proper officer and no person shall ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... store goods meant for the end use notified at serial no. (2) of notification 66/2016-Cus dated 14.5.2016 beyond the said three months. e. Principal Commissioners / Commissioners are advised that the following time lines may be strictly followed in processing of applications by existing licensees: (i) Application to be received from existing licensees within one month along with the certificate/undertakings mentioned in sub regulation (1) of regulation 3 of the Special Warehouse Licensing Regulations 2016; (ii) Commissioners should process the applications within 15 days of receipt. Since the due diligence of existing licenses was carried out while granting the license, there would be no need for verifying compliance to the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or deterioration or damage to the goods; (e) show the goods for sale; or (f) ------- 4.2 It may be noted that a duty free shop cannot meet the ingredients of sub-section (2) and (3) of erstwhile section 62 of the Customs Act, or currently, the provisions of section 58 A. Similarly, the provisions contained in erstwhile section 64 or as it now stands, do not permit retail sales from a warehouse.From this it flows that a duty free shop located in a customs area should not be treated as a warehouse. In fact, it is a point of sale for the goods which are to be ex-bonded and removed from a warehouse for being brought to a DFS in the customs area for sale to eligible persons, namely, international passengers arriving or departing from India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n MoT basis or cost recovery basis, the Principal Commissioner / Commissioner will have to determine from the licensee the extent of requirements for services of a customs officer. Guidelines regarding determining where services are to be rendered on MoT basis or Cost Recovery basis are being issued separately. 7. It is requested that interactive sessions may be planned with owners/operators of ship stores / airline stores / diplomatic stores / duty free shops business to familiarize them with the new provisions and ensure a smooth transition. 8. A detailed circular relating to documentary processes with regard to duty free shops / ship & airline stores / diplomatic stores is being issued separately. 9. Difficulties, if any, should be br ..... X X X X Extracts X X X X X X X X Extracts X X X X
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